By AP/KWMU
St. Louis, MO – St. Louis-based Edward Jones will pay $1.5 million in a settlement with the state of Missouri.
At issue is the investment firm's failure to disclose agreements in which mutual fund companies paid the company to recommend their funds.
The company paid $75 million last year in a similar case with the Securities and Exchange Commission. This new settlement with the Missouri Secretary of State's office was announced Monday.
The state found that the company had revenue sharing arrangements with seven mutual fund companies, but failed to properly inform Missouri investors.
Revenue sharing is a legal arrangement in which mutual fund companies agree to pay additional compensation to brokerage firms for recommending their funds.